As per the SEBI definition, large caps refer to the 100 biggest listed stocks by market cap and corresponds with the Nifty 100. Let us start with large cap stocks where mutual funds added significant positions in December 2025. The mutual funds added 189 Lakh shares of Shriram Finance, 162 Lakh Shares of Varun Beverages, 156 Lakh shares of Adani Green Energy, 114 Lakh shares of Interglobe Aviation (Indigo Airways), 72 Lakh shares of JSW Steel, 57 Lakh shares of Tata Capital, 34 Lakh shares of Lodha Developers, and 25 lakh shares of Hindustan Aeronautics Ltd (HAL). In addition, mutual funds also picked small quantities of Bajaj Holdings and ABB India. On the buy side, the focus was more on the BFSI space. 

What about mutual fund selling in large caps in December 2025? The selling was largely focused on lucrative mineral and metal stories. There was heavy selling of 533 Lakh shares in Infosys, 267 Lakh shares of Vedanta Ltd, 251 lakh shares of Canara Bank, 38 Lakh shares of Indian Railway Finance Corp (IRFC), 33 lakh shares each of Hindustan Zinc Ltd (HZL), 17 Lakh shares of Cummins India, 12 Lakh shares of LTI Mindtree, and 11 Lakh shares of Hero Moto. In addition, mutual funds sold smaller quantities in Siemens Ltd and Siemens Energy India. Most of these stocks sold gave stellar returns in last few months. 

Mid-caps are defined by SEBI as those companies ranked 101st to 250th on the market cap scale. Let us first look at mid-cap buying in December 2025. Overall, mutual funds added 6,600 Lakh shares of Vodafone Idea, 3,020 Lakh shares of Bank of Maharashtra (BOM), 1,450 Lakh shares of Swiggy Ltd, 307 Lakh shares of JSW Energy, 300 Lakh shares of Bajaj Housing Finance, 250 lakh shares of ITC Hotels, 139 Lakh shares of ICICI Prudential Life Insurance, 108 Lakh shares of Patanjali Foods, and 96 Lakh shares of Indian Overseas Bank (IOB). Mutual funds also bought smaller quantities of Godrej Industries in December 2025. 

How about major mid-cap selling candidates in December 2025? Mutual Funds sold 227 Lakh shares of NALCO, 50 Lakh shares of SJVN Ltd, 24 Lakh shares of IREDA Ltd, 20 Lakh shares of Kaynes Technology India, 18 Lakh shares of IRCTC Ltd, 46 Lakh shares of ITC Hotels, and 15 lakh shares of Bharat Dynamics Ltd (BDL). In addition, December 2025 also saw smaller quantities of selling in RVNL, Authum Investment, Hitachi Energy India, and Dixon Technologies. The sell side was more of a stock-specific bottom-up story. 

Let us finally look at small caps in December 2025, which are companies ranked beyond 250 in the market cap rankings. For December 2025, mutual funds added 500 Lakh shares of Belrise Industries,75 Lakh shares of Akums Drugs & Pharma, 54 Lakh shares of Fusion Finance, 27 Lakh shares of Inox Green Energy, 24 Lakh shares of Privi Specialty Chemicals, 23 Lakh shares of Sudeep Pharma, and 22 Lakh shares of Entero Healthcare Solutions. In addition, MFs purchased smaller quantities of Senores Pharma, Dredging Corporation, and Cigniti Technologies during the month of December 2025.  

What about MF selling in small caps in December 2025? Mutual funds sold 711 Lakh shares of HFCL Ltd, 137 Lakh shares of Zee Entertainment, 134 Lakh shares of Nazara Technologies, 112 Lakh shares Reliance Power, and 39 Lakh shares of Vikran Engineering. In addition, December 2025 also saw mutual funds selling smaller quantities in Sunteck Realty, NSDL, Pondy Oxides, Garden Reach Shipbuilders (GRSE), and EPACK Prefab Technologies. 

The month of December 2025 saw aggressive buying in the mid-cap space as mutual funds used their under-exposure to pick up quality mid-cap stocks at good prices, while booking profits on matured stories.